Upfront Purchase Price & Financing Wars
How I “Hacked” Tesla Pricing to Get My Model 3 Cheaper Than a New Camry
David was set on a Tesla Model 3 but discouraged by the $42,000 price tag, which seemed worlds away from a practical $28,000 Toyota Camry. He decided to “hack” the price. First, he confirmed his eligibility for the $7,500 federal tax credit. Next, he found a lesser-known $2,500 state EV rebate and a $1,000 discount on an existing inventory car. Suddenly, his out-of-pocket cost was closer to $31,000. Factoring in his estimated gas savings over five years, the futuristic car became the more financially savvy choice, making the “sensible” Camry look surprisingly expensive in comparison.
The REAL Price of a Tesla Model 3 After Incentives vs. Camry’s “Honest” Sticker
Maria saw a Tesla Model 3 listed at $39,990 and a Camry at $35,000. On the surface, the Camry was the clear winner. However, Maria did her homework. After applying the $7,500 federal EV tax credit, the Tesla’s price fell to $32,490, instantly undercutting the Camry. Her state offered another $2,000 rebate, bringing the Tesla down to just $30,490. The Camry’s “honest” sticker price had no such deductions. She realized the real price wasn’t what you saw on the website; it was what you paid after the government helped you buy the future.
Financing a Tesla: Is It a Nightmare Compared to a Simple Camry Loan?
When Ken bought his Camry, the process was simple. He sat with the finance manager, who presented three options from Toyota Financial and local banks. He chose one and signed the papers in an hour. Helping his daughter with her Tesla was a different world. It was all handled through an app with a list of faceless national lenders. The first approval had a high rate, and getting a new quote from their credit union required uploading documents and waiting a day for a response. It wasn’t a nightmare, but the impersonal, delayed process felt clumsy compared to the Camry’s guided simplicity.
Why My Camry Dealer Laughed When I Mentioned Tesla’s Price (And Why I Laughed Last)
Tom was at a Toyota dealership, and the salesperson laughed when he mentioned cross-shopping with a Tesla. “For what you’d pay for their base model,” the dealer said, “I can get you a loaded Camry with leather and a sunroof!” Tom almost agreed, but then he calculated his total cost of ownership. Over five years, he estimated saving $6,000 on gas and $1,000 on oil changes and maintenance. That $7,000 in savings made the initially pricier Tesla the cheaper long-term option. Tom bought the Model 3 and had the last laugh every time he drove past a gas station.
The “Tesla Tax”: Are You Paying a Premium Just for the Badge vs. Camry’s Value?
Comparing a $40,000 Tesla Model 3 to a $40,000 loaded Camry, Sarah’s father called the choice a no-brainer. “You’re paying the ‘Tesla Tax’ just for the name,” he argued, pointing to the Camry’s ventilated seats and premium sound system. Sarah saw it differently. The “tax” wasn’t just for the badge; it was for the Supercharger network access, the constant software updates that improved the car over time, and a completely different driving experience. She wasn’t just buying a car; she was buying into an ecosystem. For her, that value was worth the premium.
Unlocking Secret Tesla Discounts (That Camry Buyers Will Never Know)
While Camry buyers haggle at dealerships, aspiring Tesla owner Ben learned to hunt for discounts online. He discovered that Tesla offers discounts on “inventory” vehicles—new cars that are already built or were used as demos. By constantly refreshing the inventory page, he found a brand-new Model 3 with his exact specs for $1,500 off the list price, simply because it was already at a delivery center. This “secret” discount, unavailable through traditional negotiation, was a perk of Tesla’s direct-to-consumer model that no Camry buyer would ever find.
Camry’s Depreciation Curve vs. Tesla’s “Future-Proof” Value: The Upfront Gamble
Michael had two options for his $40,000: a new Camry XSE or a used Tesla Model 3. His financial advisor pointed out the Camry’s predictable depreciation, estimating it would lose 45% of its value in five years. The Tesla, however, was a wildcard. Thanks to software updates and high demand, used Teslas were holding their value remarkably well. Michael gambled on the Tesla, believing its “future-proof” technology would protect his investment. It was an upfront risk, betting on future demand over the Camry’s proven, but steeper, depreciation curve.
Lease a Tesla or Buy a Camry? The Surprising Financial Breakdown
Chloe could afford a $500 monthly payment. This could get her a loan for a brand-new $30,000 Toyota Camry. Or, as she discovered, it could cover the lease payment on a $45,000 Tesla Model Y. Buying the Camry meant building equity in a depreciating asset. Leasing the Tesla meant she could drive a much more expensive, technologically advanced car for the same monthly cost, with no long-term maintenance worries. For Chloe, who valued access to new tech over ownership, the Tesla lease was the surprise winner for her budget.
Trading My Camry for a Tesla: Was the Purchase Process Heaven or Hell?
After driving a Camry for years, trading it in for a Tesla was a shock for Rachel. The Camry process was familiar: test drive, haggle, sit in a finance office, and drive off. With Tesla, there was no haggling. She ordered her car online in 10 minutes, like ordering a laptop. The “hell” part was the waiting game, with delivery dates shifting for months. The “heaven” was a 15-minute delivery appointment with zero sales pressure. It was an efficient but impersonal experience, a complete departure from the relationship-based dealership world she knew.
“Affordable” Tesla Model 3 vs. “Loaded” Camry: Where Does Your Money REALLY Go?
For $38,000, Liam could buy a Toyota Camry XSE with every option: panoramic sunroof, premium audio, and cooled leather seats. For a similar price, he could get a base-level Tesla Model 3. On paper, the Camry offered far more tangible features for the money. But Liam realized his money for the Tesla went to different things: a massive touchscreen, industry-leading safety tech, Autopilot, and the promise of future updates. He chose the Tesla, deciding that investing in a software platform was more valuable than investing in traditional creature comforts.
The Credit Score You ACTUALLY Need for a Tesla Loan (vs. Easy Camry Financing)
When Amy bought her Camry, her 680 credit score was no problem; Toyota Financial worked with the dealer to get her an approved loan quickly. Years later, with a 720 score, she applied for a Tesla loan through their portal. The third-party lenders were stricter. Her first offer had a high APR, and she felt like just a number in an algorithm. It took an application with her local credit union to get a competitive rate. She learned that while Camry financing is designed to move metal, Tesla’s outsourced financing requires a stronger credit profile for the best terms.
State EV Rebates: Making a Tesla Model Y Cheaper than a Camry XSE?
In Colorado, Kevin was stunned by the math. A new Tesla Model Y was listed at $44,990. A top-trim Toyota Camry XSE was about $36,000. The Camry seemed like the obvious choice. But then Kevin stacked the incentives. He qualified for the $7,500 federal credit, plus a new $5,000 Colorado state tax credit. Suddenly, the Model Y’s effective price plummeted to $32,490. The spacious, high-tech electric SUV was now thousands cheaper than the “sensible” sedan, completely flipping the script on which car was the better value upfront.
Why I Walked Away From a “Great” Camry Deal for a Pricier Tesla
The dealer offered Fatima a “below invoice” price on a new Camry, a deal anyone would call great. It came to $27,500. A base Tesla Model 3 was over $10,000 more. But Fatima thought about the future. She knew gas prices were volatile and that the Tesla’s software would improve over time, while the Camry’s tech would be dated the moment she left the lot. She walked away from the Camry deal, choosing to pay a premium for what she saw as a smarter, more adaptable long-term investment, not just a short-term bargain.
The True Cost of Tesla’s Direct Sales Model vs. Camry’s Dealer Haggling
Mark spent a week negotiating with three Toyota dealers to save $1,500 on his Camry. It was a stressful, time-consuming ordeal. His friend, Lisa, ordered a Tesla Model 3 online at its listed price, with no haggling. Mark initially bragged about his hard-won discount. But Lisa pointed out she saved 10 hours of her life, avoided the stress of negotiation, and didn’t have to fend off upsells for VIN etching or paint protection. The “true cost” of Mark’s Camry included his time and sanity, making Lisa’s straightforward purchase seem like a bargain.
Is the Tesla Hype Inflating Prices Beyond Camry’s Sensible Reach?
Brian felt the intense buzz around Tesla was creating an artificial price bubble. His neighbors, colleagues, and social media were all obsessed. This demand allowed Tesla to maintain high prices with no discounts. Meanwhile, the Toyota Camry, an excellent and reliable car, sat on lots with rebates and dealer incentives available. Brian felt that buyers were paying a “hype tax” on the Tesla. He chose the Camry, believing he was buying a car based on its intrinsic value, not on its trending status, securing a sensible deal while others chased the hype.
Camry Resale Value: Still King, or is Tesla Catching Up Fast?
For decades, Paul’s dad advised him that nothing holds its value like a Camry. When Paul was ready to buy, he checked the numbers. A 3-year-old Camry retained about 60% of its value—impressive. But he was shocked to see that 3-year-old Tesla Model 3s were retaining over 70% of their original price. The high demand, lack of model-year changes, and continuous software updates were making used Teslas incredibly desirable. The reliable king of resale, the Camry, was finally facing a serious challenge from the new tech prince.
How to Negotiate a Camry Price Like a Pro (And Why You Can’t with Tesla)
Before buying her Camry, Sarah spent a week researching. She emailed multiple dealerships asking for their best out-the-door price, pitting them against each other until she got a fantastic deal $2,000 below MSRP. Her brother, who wanted a Tesla, was frustrated. There was no one to negotiate with. The price on the website was the final price, period. While Sarah felt empowered by her haggling victory, her brother appreciated the transparency and lack of games. The Camry rewarded skillful negotiators, while the Tesla rewarded those who valued simplicity and price equality.
Used Tesla Model 3 vs. New Camry: The Smartest $40,000 You Can Spend?
With a $40,000 budget, Tina faced a classic dilemma. She could get a brand-new, top-of-the-line Camry XSE with a full warranty and that new car smell. Or, she could buy a 2-year-old Tesla Model 3 with 30,000 miles. The Camry felt safe and predictable. The used Tesla, however, still felt futuristic, offering performance and technology the Camry couldn’t match. Because Teslas get over-the-air updates, the used model’s software was just as current as a new one. Tina chose the Tesla, deciding that slightly used tech was still smarter than brand-new tradition.
The Shocking Down Payment Difference: Tesla Model 3 vs. Toyota Camry
When Leo went to buy a Camry, the dealer recommended a down payment of around $4,000, or about 15%, to secure a good loan rate. It was a manageable sum. When he configured a Tesla Model 3, the default down payment in their calculator was a staggering $4,500, but the total price was much higher. To get a similar monthly payment to the Camry, the system suggested a down payment closer to $10,000. Leo was shocked. The barrier to entry for a comparable monthly note was significantly higher for the Tesla, requiring much more cash upfront.
“My Bank Offered Me WHAT for a Tesla Loan?!” (Compared to My Camry Quote)
When Maria bought her Camry, her local credit union pre-approved her for a loan at a solid 4.5% APR. A few years later, she applied for a loan for a Tesla Model 3. To her surprise, the same credit union offered her a rate of just 4.0%. The loan officer explained, “We see Teslas as a lower risk. They hold their value exceptionally well, so our investment is safer.” Maria was stunned that the perceived “risky” tech car was actually considered a more secure asset by her bank than the famously reliable Camry.
Camry’s 0% APR Deals vs. Tesla’s Standard Rates: Who Wins the Long Game?
During a sales event, a Toyota dealer offered Frank a Camry with a 0% APR deal for 60 months. The total cost would be exactly the sticker price, $32,000. A comparable Tesla Model 3, after credits, was also about $32,000, but the best loan rate he could find was 5%. Over 60 months, that 5% interest would add over $4,200 to the Tesla’s cost. Even factoring in gas savings, the Camry’s promotional financing made it the clear winner in the five-year financial game, proving that a great financing deal can be more valuable than fuel efficiency.
The “Tesla Price Drop” Gamble: Should You Wait or Buy a Camry Now?
Emily needed a new car. She could buy a Camry today and know exactly what she was paying. Or, she could order a Tesla and gamble on a potential price drop. She’d heard stories of Tesla slashing prices by thousands overnight, rewarding patient buyers but frustrating recent ones. Waiting could save her a fortune, but a price hike was also possible. Unwilling to play the market, she chose the Camry. The certainty of a fixed, negotiated price today was more comforting to her than the high-stakes gamble of Tesla’s volatile pricing strategy.
What a $500 Monthly Car Payment REALLY Gets You: Tesla vs. Camry
With a firm $500 monthly budget, David explored his options. At the Toyota dealership, that payment comfortably financed a new $30,000 Camry SE, a reliable and practical choice. Online, he discovered that same $500 payment could also cover a lease on a $45,000 Tesla Model 3. He wouldn’t own the Tesla, but he would be driving a car with far more advanced technology, performance, and prestige. The choice became clear: Did he want to own a good car, or did he want to experience a great one for the same monthly cost?
The paperwork mountain: Tesla direct order vs. Camry dealership process.
When Jen bought her Camry, she spent three hours in a dealership office, signing a mountain of paperwork for sales, financing, registration, and add-ons. It was exhausting. When she ordered her husband’s Tesla, the entire “purchase” was a few clicks online. The paperwork came later, via digital documents uploaded to an app. While the dealer process was a one-day marathon, the Tesla process was a series of small, week-long sprints. It was less of a mountain and more of a series of digital hills, trading a single painful day for a drawn-out, less personal affair.
Insurance pre-approval: A bigger hurdle for Tesla than a Camry?
Getting insurance for his new Camry was a 10-minute phone call for Bill. He gave his agent the VIN, and it was done. For his new Tesla, the process was a hurdle. Before Tesla would even give him a final delivery date, he had to upload proof of active insurance. His insurance company quoted a premium nearly 40% higher than the Camry’s, citing higher repair costs for the aluminum body and specialized sensors. The extra cost and the logistical requirement of pre-insuring a car he didn’t yet own made the Tesla process surprisingly complicated.
The “value package” myth: Camry options vs. Tesla’s streamlined trims.
At Toyota, Maya was overwhelmed with choices. The Camry had LE, SE, XLE, and XSE trims, each with optional “value packages” like the Cold Weather or Audio Plus packages. It was a complex matrix designed to upsell. When she looked at a Tesla Model 3, there were only three versions: Standard, Long Range, and Performance. Options were limited to paint, wheels, and software. While the Camry’s packages offered the illusion of value, Maya preferred Tesla’s simplicity. She knew exactly what she was getting without having to decode complex bundles.
Can you even GET a base model Tesla? Or is it Camry for true budget buyers?
Dan was a true budget buyer. He wanted the cheapest, most basic new car he could get. At the Toyota dealership, he could order a base model Camry LE for around $27,000, and they were common on the lot. When he looked for the cheapest Tesla Model 3, the “standard range” was often listed but hard to find in inventory, with Tesla prioritizing production of higher-margin Long Range and Performance models. For a buyer whose top priority was the lowest possible entry price, the readily available, no-frills Camry was the only realistic option.
The psychological price point: Why $39,990 Tesla feels different than $35,000 Camry.
For Nina, the price difference between a $35,000 Camry and a $39,990 Tesla was more than just $4,990. The Camry felt comfortably in the “mid-thirties,” a sensible family car price. The Tesla, just one digit away from $40,000, crossed a psychological barrier into “premium” or “luxury” territory. It felt like a significant leap, a move from a practical purchase to an aspirational one. That “3” at the front of the Camry’s price tag made it feel grounded and responsible, while the Tesla’s price felt like an extravagant stretch, even if the real difference was small.
Long-term financing (72/84 months): A trap for Tesla buyers, a norm for Camry?
To afford his loaded Camry, Miguel chose a 72-month loan, a common term offered by Toyota Financial to keep payments low. When his friend bought a Tesla Model Y, he also needed a long loan to make it affordable. He took an 84-month loan. The danger, they soon realized, was greater for the Tesla. While the Camry’s value was predictable, the Tesla’s was tied to rapidly evolving battery tech. Being “underwater” on a 7-year loan for a tech product that could be obsolete in 4 years was a much bigger financial trap than it was for the traditional Camry.
End-of-lease buyout: Tesla’s changing rules vs. Camry’s predictability.
When Anna leased her Camry, the contract clearly stated her buyout price at the end of the term. It was a fixed, predictable number. Her colleague, who leased a Tesla Model 3, discovered a shocking clause: there was no option to buy the car at the end of the lease. Tesla had removed this option to control their used car fleet. This unpredictability was jarring. While Anna knew she could keep her beloved Camry if she wanted, her colleague had to surrender his Tesla, making the lease feel more like a long-term rental with no future.
The “ordering fee” for a Tesla: Justified, or a Camry-style dealer doc fee in disguise?
Paul was annoyed when the Toyota dealer added a $499 “dealer documentation fee” to his Camry purchase, calling it a junk fee. He thought Tesla’s transparent pricing would be different. But to place his Model 3 order, he had to pay a $250 non-refundable “order fee” upfront. He wondered, what was this for? It didn’t go toward the car’s price. He concluded it was just Tesla’s version of a doc fee, paid at the beginning instead of the end. It was a fee for their paperwork, just like the dealer’s, cleverly disguised as a modern, digital step.
How government shutdowns impact EV credits (and why Camry is a safer bet then).
In late 2023, Chris ordered a Tesla, banking on the $7,500 tax credit to make it affordable. A week later, news of a potential government shutdown threatened to disrupt IRS operations, creating uncertainty around when tax credits would be processed. Suddenly, his affordable purchase became a financial gamble dependent on politicians. His neighbor, who bought a Camry that same week, had no such worries. The Camry’s price was fixed and independent of government whims, making it a much safer, more predictable purchase in times of political instability.
Getting your Tesla faster: The “inventory car” trick vs. waiting for a Camry allocation.
Sara wanted a specific blue Camry, but the dealer said the factory allocation meant a 3-month wait. Frustrated, she looked at Teslas. The website quoted a 2-month wait for a custom order. But then she discovered the “inventory car” trick. By checking Tesla’s website for existing, unsold cars, she found an identical Model 3 just 200 miles away. She put down a deposit and picked it up the following weekend. While the Camry’s supply chain was rigid, Tesla’s direct model offered a backdoor for impatient buyers to jump the queue.
The “fully loaded” Camry TRD vs. a base Model 3: Performance per dollar upfront.
Mark, a car enthusiast, had about $40,000. He test-drove the sporty Camry TRD V6. It had 301 horsepower, an aggressive body kit, and a throaty exhaust note—a fun, visceral experience. Then he drove a base Tesla Model 3. It looked plain, but its instant electric torque made it feel dramatically faster, launching from 0-60 in 5.8 seconds, quicker than the Camry. The Camry offered the sensation of performance, while the Tesla delivered the actual numbers. For pure, straight-line performance per dollar, the unassuming base Model 3 was the clear winner.
Does Tesla’s non-negotiable price actually SAVE you money over Camry haggling?
Maria hated haggling. To buy her Camry, she spent a weekend visiting three dealerships, fighting over every dollar to save $1,200 off MSRP. It was a victory, but it left her drained. Her sister bought a Tesla Model 3 online in 15 minutes. The price was the price. While Maria technically paid less than the sticker, her sister argued that the value of avoiding a weekend of stress, anxiety, and high-pressure sales tactics was worth more than $1,200. For her, the “no-haggle” price wasn’t just fair; it was a feature she was willing to pay for.
The cost of “Full Self-Driving”: A $12k Camry option you’d never buy?
When configuring his Model 3, Jeff was prompted to add “Full Self-Driving Capability” for $12,000. It was a software upgrade that promised future autonomy. He thought about the Camry. For $12,000, you could practically buy a second, used Camry! No Toyota customer would ever consider a single option that cost 40% of the car’s value. This put the cost into perspective. While intriguing, paying the price of a reliable used car for a beta software feature felt like an absurd proposition compared to the Camry’s world of sensible, tangible options.
Why your parents think a Camry is “sensible” and a Tesla is “frivolous” (price perception).
When Lisa told her parents she bought a $45,000 Tesla, they were shocked. “That’s a luxury car! So frivolous!” they said. A week later, her brother announced he bought a new Toyota Camry Hybrid for $38,000, and their parents praised his “sensible” choice. Lisa knew that after the $7,500 tax credit and gas savings, her Tesla’s five-year cost was nearly identical to the Camry’s. But the perception was locked in: Camry stood for pragmatism and savings, while Tesla, regardless of the real math, represented a high-priced, frivolous tech gadget.
Can you flip a new Tesla for profit like some do? (Not happening with a Camry!)
During the peak of supply chain shortages, Kevin saw a chance. He managed to get a Tesla Model Y delivered in two months. Due to the huge backlog, identical used models were selling for $5,000 over the new price. He immediately listed his brand-new Tesla and sold it for a quick profit. He then bought the Camry he originally considered, with money to spare. This “Tesla flip” was a unique market phenomenon driven by hype and scarcity. No one was flipping a new Camry for profit; its value was in its utility, not its speculative demand.
The impact of interest rate hikes: Hitting Tesla buyers harder than Camry seekers?
When interest rates were low, the gap between a Camry and a Tesla loan payment was manageable. But as rates climbed from 3% to 7%, the math changed dramatically. On a $30,000 Camry loan, the payment increased by about $60 per month. On a $45,000 Tesla loan, the payment jumped by over $90. Furthermore, Toyota often offered promotional financing (like 3.9% APR) to counteract high rates, while Tesla buyers were stuck with market rates. The rising tide of interest rates lifted all boats, but it threatened to swamp the more expensive Tesla much faster.
“I bought a Tesla with crypto”: The high-risk path vs. Camry’s traditional buy.
Ben, a young tech investor, saw his crypto portfolio surge. He cashed out just enough to buy a Tesla Model 3 outright—a high-risk, high-reward move that paid off. He turned digital speculation into a physical asset. His dad, meanwhile, bought a Camry the traditional way: with a down payment from his savings account and a simple loan from the bank. The contrast was stark. The Camry represented a safe, predictable financial path, while the Tesla, bought with volatile assets, symbolized a new, riskier way of making major purchases.
The true cost of Tesla’s paint options vs. Camry’s standard palette.
When ordering a Camry, Chloe saw that most colors were free, with a special pearl or red costing an extra $425. When she configured her Tesla, she was shocked. Only one color (grey) was free. Black was $1,000, blue was $1,500, and red was a staggering $2,000 extra. What was a minor upcharge on the Camry was a significant expense on the Tesla. She realized that even the advertised base price of the Tesla was misleading unless you wanted the one color they chose for you. This “paint tax” was a hidden cost of entry.
Aftermarket financing for Teslas: Better rates than Tesla’s own? (vs. Toyota Financial)
When buying a Camry, using Toyota Financial Services is often the easiest and most competitive option. When Sam ordered his Tesla, he was presented with financing options through Tesla’s portal from partner banks. The rates were okay, but not great. On a whim, he applied to his small, local credit union. They offered him a rate a full percentage point lower, saving him thousands. He learned that unlike the Camry’s integrated financing, it pays to shop around for a Tesla loan, as their “convenient” partners aren’t always the cheapest.
The “demonstrator” or “loaner” Tesla deal: A Camry-style bargain?
Everyone knows you can get a great deal on a dealership’s “demonstrator” Camry—a new car with a few thousand miles, sold with a steep discount. Ivan wondered if Tesla did the same. He found Tesla’s inventory of “Demo Vehicles” online. A Model 3 with 1,500 miles was listed with a $2,500 discount. It was a good deal, mirroring the Camry concept. However, he had to accept any minor wear and tear sight-unseen. It was the modern, digital equivalent of the classic dealer bargain: a solid discount in exchange for a little bit of prior use.
Sales tax surprises: How Tesla’s delivery model can affect your final price vs. Camry.
When buying a Camry, sales tax is simple: it’s based on the final, negotiated price you pay at the local dealership. When Wei ordered his Tesla, the process was different. Because he ordered online and it was delivered to his state, the sales tax was calculated on the full, non-negotiable list price. Even if he got a small credit from Tesla for a referral, the tax was based on the higher original amount. This meant he paid slightly more in tax on his Tesla than he would have on a similarly priced, but negotiated, Camry.
Understanding Tesla’s “Potential Savings” Figure: Real or Marketing Fluff? (Camry doesn’t need it)
On Tesla’s website, a bold “Potential Savings” price was displayed, making the car seem thousands cheaper. This number included estimated gas savings over six years. When Aisha looked at the Camry website, it just showed the MSRP. Toyota didn’t need to project future savings because the Camry’s value proposition was its low upfront cost. Aisha saw the Tesla figure as marketing fluff designed to minimize sticker shock. The Camry was honest about its cost today; the Tesla was selling you on a theoretical, best-case-scenario cost of tomorrow.
When does a Camry Hybrid become more expensive upfront than a base Model 3?
Olivia was comparing a base Tesla Model 3 at $39,990 to a Camry Hybrid. The base hybrid was cheaper, but she wanted features. As she optioned a Camry Hybrid XLE with a premium package, its price quickly climbed to $36,000. After applying the $7,500 federal tax credit to the Tesla, its effective price dropped to $32,490. Suddenly, the fully-featured Camry Hybrid was significantly more expensive upfront than the base Tesla. The EV credit was so powerful that it made the premium electric car cheaper than the top-tier hybrid.
The “I can’t afford NOT to buy a Tesla” argument (due to gas savings) vs. Camry’s low entry.
Driving 20,000 miles a year, Mike’s gas bill in his old car was $300 a month. He calculated that a Tesla would save him about $250 a month on fuel. He told his wife, “We can’t afford NOT to buy one!” That $250 savings could offset a higher car payment, making a more expensive Tesla feasible. His friend, however, just needed a reliable car and didn’t have the large down payment for a Tesla. For him, the Camry’s low entry price was the only thing he could afford today, making the Tesla’s long-term savings argument an impossible dream.